Accor pledges to pay for employee Covid-19 medical bills

The group said that more than half of its Accor-branded hotels worldwide are currently closed, with this figure likely to rise to two thirds in the coming weeks.

Accor said that the deteriorating situation had led it to take “aggressive, incremental actions”, including a travel ban, hiring freeze, reduced schedules and /or furloughing for 75 per cent of global head office teams for the second quarter of this year, resulting in a reduction in costs of at least €60m for the year

Recurring investment plans have also been reviewed, reducing costs by another €60m, and other costs including sales, marketing and IT have been streamlined.

Board members will forego 20 per cent of their fees, and the group’s chairman and CEO Sébastien Bazin will take a 25 per cent pay cut, with the cash equivalent being contributed to the fund.

The group said that its “recent asset-light transformation and cash preservation strategy” meant it had a strong balance sheet, with over €2.5 billion in cash on hand and an undrawn revolving credit facility of €1.2 billion, and it stressed that while it expected “a severe impact” on its 2020 performance, it remained bullish on the long-term perspective of the hospitality industry.

Accor pledged to pay Covid-19 related hospital expenses for all of its 300,000 employees who do not have social security or medical insurance

Accor to reduce pay, furlough 75% of global head office teams

 Accor reviewed its recurring investment plan for 2020, resulting in a €60m reduction in capital expenditure. The company is further streamlining all other costs, such as sales, marketing and IT, in line with lower systemwide revenues.

Given the current situation, Accor is reducing schedules and/or furloughing 75 percent of its global head office teams for Q2, as well as implementing a travel ban and a hiring freeze. These actions, it estimated, will result in a minimum €60 million reduction in general and administrative expenses for 2020 to mitigate the COVID-19 pandemic’s impact on business.

Accor said it currently has more than €2.5 billion in cash on hand and an undrawn revolving credit facility of €1.2 billion.

Accor is also withdrawing its proposal for a 2019 dividend payment of around €280 million. It decided to allocate 25 percent of the planned dividend to the launch of the ALL Heartist Fund, which will assist:

• The group’s 300,000 employees, pledging to pay for the COVID-19-related hospital expenses of those who do not have social security or medical insurance

• On a case-by-case basis, furloughed employees “suffering great financial distress”

• On a case-by-case basis, individual partners facing financial difficulty

• Health-care professionals and nonprofit organizations

  Accor board members have collectively decided to reduce their attendance fees by 20 percent to the benefit of this fund. Additionally, Chairman/CEO Sebastien Bazin will forgo 25 percent of his compensation during the crisis with the cash equivalent to also be contributed to the fund.

Millennium Hotels and Resorts MEA names Samy Boukhaled as vice president of operations in the UAE

Millennium Hotels & Resorts MEA has named Samy Boukhaled as vice president of operations for the UAE. Boukhaled has been instrumental in implementing the expansion strategy of the company in KSA while assuming the position of vice president of operations that cultivated great success. Thus, his new appointment comes to leverage his experience in UAE.

Renowned for his revenue-oriented approach, Boukhaled has more than 30 years of experience in the industry, having held several leadership roles with hotel companies such as Accor and Sofitel, across France, Bahrain, Morocco and the KSA.

He holds an MBA in International Hotel Management from Vatel International Business School Hotel & Tourism Management in France and a Baccalaureate Degree from Morocco, among other awards and certifications.

Accor launches day-room bookings across 10 hotels in Bangkok for use as private offices

Accor is offering a day-use room package across 10 hotels in Bangkok to guests who need a private office space for the day.

Bangkokians who are desperately looking for a spacious hideaway to get their job done or who need a quiet place to focus on an important project can now book a room for up to 8 hours between 8:00am-8:00pm in 10 hotels.

Participating hotels are located all over Bangkok to enable local residents to select a private office location that is close to their homes:

• GRAND MERCURE ASOKE RESIDENCE

• GRAND MERCURE BANGKOK FORTUNE

• PULLMAN BANGKOK KING POWER

• PULLMAN BANGKOK SUKHUMVIT

• VIE HOTEL BANGKOK MGALLERY

• IBIS Styles Bangkok Sukhumvit Phra Khanong

• IBIS STYLES BANGKOK SUKHUMVIT 50

• NOVOTEL BANGKOK ON SIAM SQUARE

• NOVOTEL BANGKOK SUKHUMVIT 20

• MERCURE BANGKOK SUKHUMVIT 11

   Accor recommends that all travellers review guidance from the World Health Organization and follow any travel advice issued by the Thai authorities.

  Last week, Accor announced the launch of the 'ALL Heartist Fund', a COVID-19 special purpose vehicle dedicated to supporting employees and partners globally. This fund will typically assist the Group's 300,000 employees, pledging to pay for their COVID-19-related hospital expenses, for those who do not have social security or medical insurance, as well as furloughed employees suffering great financial distress.

  The fund will also seek to support individual partners facing financial difficulty and assist in the deployment of solidarity initiatives to support front-line healthcare professionals and non-profit organisations.

South African Chef Alison Kiewiet van Eeden is the new executive chef for Novotel & Ibis Dubai Deira City Centre

Bringing almost two decades of experience with her, Alison Kiewiet van Eeden has taken up the role of executive chef at Novotel & Ibis Dubai Deira City Centre.

The South African has already been tasked with revamping the menu at Bistro Domino Restaurant which has recently received a facelift.

As one of the few female executive chefs working under the AccorHotels brand, Kiewiet van Eeden will also drive forward the HeforShe global solidarity movement aligned with AccorHotels concept for a gender equal world.

“We are very excited to welcome chef Alison in the revamped Bistro Domino, as we continue to lift our expectations higher for our guests to experience a diverse menu with exciting fusion interiors” said Nishan Silva, cluster general manager.

More Appointments

AccorHotels to buy half of lifestyle hospitality company sbe for US$319m

The French hospitality group will acquire the 50% of sbe’s common equity held in part by real-estate investment firm Cain International for US$125 million, with the group’s founder and CEO Sam Nazarian continuing to own the remaining 50%.

Additionally, AccorHotels will invest US$194 million in a new preferred debt instrument that will be used to redeem all existing preferred units, also held in part by Cain International, bringing the total investment to US$319 million.

sbe will remain independent and continue to be led by Nazarian, while retaining its global headquarters in New York.

“This long-term investment by AccorHotels provides sbe, its customers and hotel owners with greater depth and breadth around the world,” Nazarian commented.

This deal, building on sbe’s acquisition of Morgans Hotel Group in 2016, would further accelerate sbe’s growth domestically in the United States and expand into new markets internationally, particularly in Europe, he added.

Accor Hotels starts facial recognition trials in Brazil

Accor Hotels starts facial recognition trials in Brazil The French hotel chain is investing further in the technology in a bid to enhance guest experience.

Selected guests of the hotel's loyalty program will be the first users the new technology at a Pullman hotel in São Paulo.

Under the trial, guests are able to register at the desk or an information pillar at the reception then use facial recognition to access the room, therefore removing the need for keycards.

According to the company's vice-president for information technology for South America at Accor, Erwan Le Goff, the aim of the project is to offer more personalization and therefore a market differentiator for the brand.

"We realize this technology is a big market differentiator and will be utilized by the sector in the years to come. For that reason we decided to roll it out to improve our guest experience," the executive says.

"The purpose of the project is to improve the way we serve [guests]. Whether it is by giving more control or speeding up the check-in process at our hotels, we always strive to make everyone feel welcome, " he points out.